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Duties and other measures

Tobacco minimum excise tax

The new minimum excise tax is £280.15 per 1000 cigarettes. The change took effect from 6pm on 22 November 2017.

Tobacco product duty rates

With effect from 6pm on 22 November 2017 tobacco rate increases will apply that will see product costs increasing by 2% above RPI inflation each year until the end of the parliament. It was also announced that hand-rolling tobacco will rise by an additional 1% to 3% above RPI inflation rate.

Offshore trusts

New anti-avoidance rules that relate to the taxation of income and gains accruing to offshore trusts are to be introduced.

These rules mean payments from an offshore trust intended for a UK resident individual do not escape tax when they are made via an overseas beneficiary or a remittance basis user. To this effect draft legislation was published on 13 September 2017.

Minor changes have been made to the legislation, including to ensure that the onward gift rules can apply if the close family member rule applies, to clarify the position in the year of the settlor’s death and in relation to onward gifts to multiple recipients.